Profit-taking pares down early gains

KARACHI: The stock market on Monday carried investors on a seesaw ride that halted at about the same place where it began.

The KSE-100 index edged up by just 1.18 points for the day to close at 49,039.41.

It was a typical session where investors who threw caution to the wind could have suffered considerable losses. The market started off on a positive note and swung up to intraday high by adding 403 points underpinned by textile, oil and gas, cement, fertiliser, power and steel stocks.

In later hours, the market succumbed to profit-taking as many regarded it as highly overbought. Others thought investors were spooked by the ongoing Panama case hearings as well as a rising trade deficit of $2.76 billion versus $2.04bn a year ago.

Overall, volumes increased 14.3 per cent over the last session to 492 million shares while the value increased 1.1pc to Rs21bn as small- and medium-cap stocks led the volumes. Foreign investors were net sellers of $6.8m worth of stocks.

The textile sector continued to garner investors’ interest on the back of the news that the prime minster may announce Rs75bn package for six major export-oriented sectors on Tuesday.

Nishat Chunian and Gul Ahmed Textile gained 2.7pc and 2.9pc, respectively. Steel stocks remained in demand with Amreli Steel and Mughal Iron and Steel hitting their upper caps.

Top contribution to the index on Monday came from UBL 0.61pc, MCB 1.02pc Pakistan Services 5pc, TRG 5pc and Fauji Fertiliser 1.11pc. HBL and Lucky Cement went down by 0.76pc and 0.54pc, respectively, weighing down the index.

Analyst Nabeel Haroon at JS Global said the exploration and production sector lost value as crude oil prices failed to sustain above the level of $54 per barrel. OGDC was down 1.19pc and PPL lost 0.67pc.